June 2021 Newsletter
Inflation, Investing and You The Ipath Bloomberg Commodity Index (DJP) has risen by almost 60% since May of 2020. Commodity ETFs now hold the top six spots for relative strength among 51 ETF groups. If this continues, consumer inflation may soon reach a level not seen in decades. Hedge fund leader, Paul Tudor Jones, says […]
May 2021 Newsletter
It is time to consider a revaluation period for stocks. During such phases market volatility increases. Value stocks tend to outperform growth stocks. Price-to-earnings multiples become the focus. However, with the money supply in the United States rising almost 30% since the beginning of the pandemic in 2020, it is unlikely stocks will enter a […]
April 2021 Newsletter
Global Warming Rush and Capital Spending The world is in a rush to reduce global warming. Billions are being spent on a solution. So, follow the money. A financial bonanza awaits those companies with innovative solutions. As well-regarded carbon emissions expert, Bill Gates, admits the world’s democratic industrial nations need to engage capitalistic economies to […]
March 2021 Newsletter
Munger on the Markets When one of the richest and oldest active investors on Wall Street speaks out, it is worth noticing…especially when his perfunctory remarks are famous for worldly wisdom. Internationally-famous Berkshire Hathaway Vice Chairman, Charlie Thomas Munger (born January 1, 1924) efficiently spoke to the problem of wild speculation on Wall Street this […]
January 2021 Newsletter
The massive increase in federal fiscal-deficit spending during 2020 and now planned for 2021 will create several unintended consequences. Most immediate is the recognition that the reflation trade is under way and may last for years. Secondarily is the inflation effect, or lack of it, that the Federal Reserve Board wants to create, to impose […]
December 2020 – Holidays Newsletter
Happy Holidays to everyone! Now onto Higher Earnings and Lower P/Es Thank you again for honoring us with your confidence and trust during this, the year of the pandemic. The 2020 pandemic created the biggest economic “bust to boom” cycle of the post-war era, and it’s not over yet. While vaccinations are here for many, […]
October 2020 Update on the Markets
The Technical Take Technically, the markets remain in a bullish pattern through the early part of October. However, as flu activity builds into the fall and winter there is fear of a second wave of COVID-19 cases. Canada and the northern Midwest are already beginning to see a spike in new cases in conjunction with […]
Massive Economic Stimulus. Benefits One-Year Lagged
With just days to go before the 2020 presidential electionit seems prudent to discuss economic issues facing both political camps as they seek to differentiate themselves to voters. In fact, both camps have drawn a bead on fiscal and monetary policy accommodation to reinvigorate the economy; the significance of which I touch upon in this […]
Rotation: A Logical Assessment in a Time of Abundance: Pestilence and Chaos
Inorganic shutdown leads to inorganic recovery By performance, the S&P 500 recently had its best month (August) since 1938- driven by technology growth stocks! That’s good, right? That is bad news. Technology stocks are pricey. Also, history rarely provides repeats in quick succession. So, expect the next wave of investor support to produce an upswing […]
August 2020 Newsletter
Sometimes it feels like the world is changing faster than reports get to you. There are so many significant issues affecting the financial markets, interest rates, negative net yields on the 10-year treasury, gold, the decline in the dollar, pandemic-market correlations, fiscal and monetary policy successes, and earnings. Each of these topics can account for […]